Section 87a of the income tax act, 1961 was introduced in finance act, 20 and was further amended. A new section 87a by finance bill 20 has been introduced for income tax deduction of rs. What is section 87a of income tax which is used for rs. Rebate under section 87a of income tax act, 1961 section 87a relief us 87a.
As per the incometax act, 1961 any individual being a resident of india, having. It includes levy, administration, collection as well as recovery of income tax. Section 87a of the income tax act, 1961 was launched to offer some relief for taxpayers who fall under the 10% tax slab. Rebate us 87a for ay 201718 fy 201617 union budget 201617 was presented by the finance minister on 29022016. As per section 87a of the income tax act, 1961 as amended by the finance act, 2019, an assessee, being an individual resident in india, whose total income does not exceed three hundred fifty thousand rupees, shall be entitled to a deduction, from the amount of income tax as computed before allowing the deductions under chapterviii on his. In the budget 20 speech, the finance minister had said. This newly inserted section gives rebate up to maximum of rs. Deduction under section 87a of the income tax act taxreturnwala.
Rebate under section 87a is available in the form of deduction from the tax liability. Income tax act 1961 complete act citation 530 bare. It is necessary to read clauses 19 and 20 of the bill to make it more clear. Section 87a of the income tax act section 87a of the income tax act provides income rebates for those whose income falls under the 10% tax slab. In section 16 of the incometax act, 1961,43 of 1961. As per section 87a of the income tax act, 1961 as amended by the finance act, 2019, an assessee, being an individual resident in india, whose total income does not exceed three hundred fifty thousand rupees, shall be entitled to a deduction, from the amount of incometax as computed before allowing the deductions under chapterviii on his. An individual who is resident in india and whose total income does not exceed rs. Section 360 of the code of criminal procedure, 1973, and the probation of offenders act, 1958, not to apply. The income tax rates and slabs applicable for the financial year 2014 are same as it was during financial year 2012, except the two major changes which was given below. The refundrepayment is furnished as the withdrawal of total liability in tax encountered. Omitted by the taxation laws amendment act, 1975, w. Rebate under section 87a of income tax act,1961 taxup india. Section 87a in the incometax act was proposed by the finance bill of 20 to. Section 87a of the income tax act, 1961 has been in limelight since.
Rebate of incometax in case of individuals of sixtyfive years or above omitted. Tax rebate 87a of income tax act fundstiger fast loans for india. The income tax rebate under section 87a offers some relief to the taxpayers who fall under the tax slab of 10%. Section 87a of the income tax act, 1961 was inserted by the finance act, 20 w. It was first introduced in the finance bill of the year 20 with a view to. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts.
This has been made possible by inserting a new section 87a in the income tax act of 1961. Any individual whose total net income does not cross rs. Income tax benefits available to salaried persons for a. Adoption by central government of agreement between specified associations for double taxation relief. Introduction of section 87a income tax rebate tdsman blog. Income tax act, was inserted by the finance act, 20, to provide tax relief to individual taxpayers. List of sections of income tax act 1961 finance updates. For the reduction in tax liability of an individual with income not exceeding rs. Section 87a of the income tax act, 1961 has been in limelight since the announcement of the interim budget 201920 in which individuals earning a net taxable income upto rs. Section 112a tax on longterm capital gains in certain cases manual rebate us 87a resident individuals where total income does not exceed 3. Rebate under section 87a of income tax act, 1961 taxguru. Income tax rebate frequently asked questions faqs q1.
Section 87a rebate of incometax in case of certain. Section 87a of the income tax act rs 12500 tax rebate. Rebate us 87a of the income tax act, 1961 aviratshiksha. Conditions of section 87a of the income tax act, 1961. Section wise income tax deductions for ay 202122 fy 202021. Latest income tax act sections list has been provided for finance people. Rebate under section 87a of the income tax act fintrakk. Rebate under section 87a of income tax act,1961 section. I posted the income tax calculator for fy 2014 and received a lot of queries regarding the rs. Finance act 20, has introduced new section, namely section 87a. Section 87a of the income tax act was introduced in finance act, 20. Given income tax act sections list includes revised, omitted and newly added tax rules. It provides for levy, administration, collection and recovery of income tax.
Section 87a, one of the several sections of the income tax act, was inserted by the finance act, 20, to provide tax relief to. The section provides for a income tax rebate up to rs. The following are some of the noteworthy points of section 87a of the income tax act, 1961. Any individual whose annual net income is not more than rs. Section 90 of income tax act agreement with foreign. As per finance act 2017, a rebate shall be allowed to the taxpayers being resident individual whose net total income does not exceeds rs. Substitution of reference of certain expression by other expression. Tax deductions under section 1010d of the income tax act, 1961, is applicable on any sum received under a life insurance plan i.
The rebate available is maximum of 1 100% of tax payable on total income or 2 rs. I also bought another property under construction in december 20 for rs. Section 87a of the income tax act claim tax rebate under. A new section 87a has been introduced in the budget 2014 under income tax act, 1961, which is applicable from 1st april, 2014, wherein an additional relief upto rs. Y 201718 tax rebate of rs 12500 for individuals with taxable income of up to rs 5 lakh is allowed in fy 20192018 ay 202021. Rebate us 87a of the income tax act 1961 sensysindia. Download the list of sections of income tax act,1961 in pdf and excel format.
Important points of section 87a of the income tax act, 1961. No, the basic exemption limit remains unchanged at rs. The highlight of budget 20 for common man was the tax rebate of rs 2,000 for people with income of less than rs 5 lakhs. Rebate under section 87a of income tax act,1961 section 87a relief us 87a. The section was introduced to provide benefits to individuals whose total net income is. Agreement with foreign countries or specified territories. Section 87a was first introduced to the income tax act, 1961 by means of the finance act, 20.
All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. The rebate under this section is available to resident individuals from a. This rebate can be availed tax payerassessee under section 87a. Death benefit or maturity benefit or bonus received from life insurance policies. Section 87a of the incometax act was introduced in finance act, 20. The finance act 20,had introduced section 87a under the income tax act,to provide relief to the small tax payers. Section 87a was introduced in finance act 20 by honorable finance minister p chidambaram this was applicable from 01 04 20 for a y 2014 15 87a an assessee being an individual resident in india whose total income does not exceed five hundred thousand rupees shall be entitled to a deduct. Incometax act finance act, 20 explanatory notes to the provisions of the finance act, 20 circular no. The government of india brought a draft statute called the direct taxes code intended to replace the income tax act,1961 and the wealth tax act, 1957. The amount of deduction that can be claimed under this section is either 100% of the income tax liability or rs. The incometax act, 1961 is the changing statute of income tax in india. Section 87a claim tax rebate under section 87a bankbazaar. Section 87a of the income tax act, 1961 was introduced in finance act, 20 to give benefit to a large number of people whose net total income is less than rs. Summary of section 87a of income tax act inserted by the finance act, 20, w.
Section 87a of the income tax act, 1961 was introduced in finance act, 20 to give benefit to a large number of people whose net total. This is only available for individuals and not for members of hindu undivided families or companies. What is rebate under section 87a and who can claim it. In the interim budget 2019, section 87a of the income tax act 1961 is amended to. Income tax act year 2019 2018 2017 2016 2015 2014 20 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 1968 1967 1966 1965 1964 1963 1962 1961. The section was introduced to provide benefits to individuals whose total net income is below rs. Be it enacted by parliament in the twelfth year of the republic of india as follows. Section 87 a of the income tax act, 1961 was introduced in finance act, 20 to give benefit to low income group of people whose net total income is less than rs. Tax rebate 87a of income tax act fundstiger fast loans. This has been made possible by inserting a new section 87a in the income tax act,1961 which allows rebate of upto rs.